Overview

• President Trump has terminated all trade negotiations with Canada effective immediately in response to its digital services tax on American technology firms.
• The 3% levy on digital services revenue, retroactive to January 2022 and set to take effect June 30, could cost US companies as much as $2 billion.
• The administration will notify Ottawa of new tariffs on a broad range of Canadian imports within seven days as retaliatory measures.
• Canada is the United States’ second-largest trading partner, with bilateral goods trade topping $760 billion last year.
• Prime Minister Mark Carney said Canada will keep negotiating in the best interests of its workers as the US pursues parallel trade talks with China and India.